STOCK DIFFERENCE IN AUDIT DEFECT

[SK Krishna]

Hello sirs/madams,

Why should the purchase turnover in stock value not be estimated based on GSTR - 2A figures and it has to be reconciled based on books of accounts.??

Why AS-2 has to be considered by the department authorities??

Pls post your views .Thank you🙏🏻

AI Summary

Section 35 CGST Act and Rule 56: Stock Value Based on Books, Not GSTR-2A; AS-2 Compliance Explained An individual inquired about why stock value should not be based on GSTR-2A figures but reconciled with the books of accounts, and why AS-2 is considered by authorities. Responses highlighted that Section 35 of the CGST Act and Rule 56 of the CGST Rules require maintaining accurate accounts, including stock records, which are primarily checked by the department. GSTR-2A is a report for compliance awareness, not a final record. AS-2 compliance is necessary if legally required, otherwise standard accounting records suffice. The importance of maintaining accurate books for GST compliance was emphasized.